Marketing

Is this the beginning of the end of primary marketing research companies?

There has been a lot of hype around Web 2.0 for that past year or two. It certainly changed the way organizations communicate with clients – and more importantly how clients communicate with organizations. Screw-up and the back-lash is instant; do a good job and a pat on the back is equally quick. So I am thinking, is this the beginning of the end of marketing research companies? Or is it too early to even speculate on this?

Primary marketing research is typically tailored to an organization’s particular needs. Some of the tools of primary marketing research are: focus groups, surveys, field tests, interviews or observation. But professional primary marketing research is a very expensive proposition for most small businesses. Focus groups can cost upwards of $4,000 while surveys can cost over $10,000. However, there are self-help on-line survey tools that enable small businesses to use their survey for less than $500 per year.

Will Web 2.0 change all that? By its nature Web2.0 is a two way communication medium. Take blogs for instance. If your organization has clients, chances are you have a blog. (If you don’t, seriously consider having one. Here are some reasons.) In addition to being a great source of feedback from clients and prospects, blogs can also be the platform where new ideas are discussed and hidden needs uncovered. All the business needs to do is to ask the right questions – and they will get the answers they seek. Wiki is another collaboration tool between customers and the business.

Such real time tools are available to all organizations and has leveled the playing field in primary marketing research between large businesses and small businesses. On-line survey tools and Web 2.0 is a lethal combination. How should marketing research firms change to survive this?